President Irfaan Ali has urged transport operators and fuel suppliers in Guyana to avoid increasing fares and profit margins amid rising global fuel prices linked to ongoing tensions in the Middle East.

In a national address on May 19, Ali said the government has already exhausted one of its main policy tools by maintaining a zero percent excise tax on imported fuel products since 2022 to shield consumers from inflationary pressures.

The president said the measure has cost the government more than GYD$100 billion annually but has helped keep fuel prices below international market increases.

“Now that we have this challenge and we have utilised fully that tool, the minibus operators, the taxi operators, the speedboat operators, truckers and all stakeholders now have to play their role,” Ali said.

He argued that although the government absorbed major fuel costs over the years, there had been no corresponding reduction in transportation fares when global fuel prices declined.

“We did not see any corresponding reduction in taxi fares, air fares or minibus fares,” he stated.

Ali said operators now have a responsibility to act “socially responsible” during the current period of volatility rather than passing the full impact onto consumers.

The president noted that although Guyana is now a major crude oil producer, the country still imports all refined fuel products because it does not yet have oil refining capacity.

He said global shipping disruptions and instability in the Middle East were placing additional pressure on the cost of imported fuel and energy supplies worldwide.

Ali also revealed that the government is exploring longer-term measures to reduce fuel costs, including dredging river channels to accommodate larger cargo vessels and seeking investment partners for a local oil refinery.

“We are actively looking at partners who want to invest in a refinery here in Guyana so that we can have security of supply and more price stability,” he said.

The president added that the government has also reduced taxes on vehicles and outboard engines in recent years as part of efforts to lower transportation costs for citizens and businesses.

Ali said addressing the current fuel price pressures would require cooperation between the government, private sector and transport providers to minimise the impact on consumers and the wider economy.